XPLA blockchain now supported by on-chain tokenizer platform Gall3ry

Lion Group Holding Ltd (LGHL), a Nasdaq-listed financial services firm that provides an all-in-one platform for traders, has announced that it has secured $600 million to fund a Hyperliquid (HYPE) treasury. In a press release published by PR Newswire on behalf of the firm on June 18, the company outlined that a $600 million funding facility has been put in place by ATW Partners, a New York-headquartered investment firm that manages a number of private equity funds. Global investment bank Chardan Capital acted as the placement agent in facilitating the funding, with the first closing of $10.6 million, as per the subscription agreement.Photo by Towfiqu barbhuiya on UnsplashCorporate treasury strategyLion Group will use that money to launch a new corporate treasury strategy built around Hyperliquid’s HYPE token. Hyperliquid is a decentralized exchange (DEX) which was created by Hyperliquid Labs, a startup founded by Jeff Yan.  The HYPE token is the native token of the Hyperliquid platform. It’s used to secure the network through staking and for project governance. The token is also used to provide transaction incentives, while the Hyperliquid platform buys back HYPE tokens using trading fee revenues. Lion Group’s platform offers its users access to contract-for-difference (CFD) trading, total return swap (TRS) trading, over-the-counter (OTC) stock options trading, while also acting as a futures and securities brokerage. Up until 2022, the firm was based in Hong Kong, opting to relocate to Singapore at that point. Primarily, the company serves corporate clients, individual professional investors and retail investors located in China and throughout the Southeast Asian region. Future of trading is on-chainIn explaining its rationale for pursuing a HYPE treasury strategy, the company’s CEO, Wilson Wang, stated: “Hyperliquid represents a natural extension of LGHL's existing derivatives business into decentralized markets, and reflects our conviction that decentralized on-chain execution is the future of trading." Going forward, the company will pursue a strategic accumulation of HYPE, with the token serving as the firm’s primary reserve asset. In addition to HYPE, Lion Group outlined that it may also allocate funds to purchase Solana (SOL) and Sui (SUI), with these tokens to be staked and custodied with institutional-grade digital asset custodian, BitGo. Lion Group asserted that both of these assets would form “key pillars” of a treasury strategy “focused on execution-first protocols.” Wang added that the company views “protocols like HYPE, with decentralized sequencing, as foundational to building scalable DeFi systems.” The company is not the first mover in terms of launching a HYPE-based corporate treasury. On June 17, Eyenovia, Inc. (EYEN), a Nasdaq-listed ophthalmic technology firm, announced that it had entered into a securities purchase agreement with a view towards financing a $50 million HYPE treasury. Additionally, the firm plans to change its name to Hyperion DeFi and its stock ticker to HYPD later this week to reflect its new HYPE-based reserve strategy. Shares in Eyenovia closed at $4.83 on June 18, down 30.7% over the course of 24 hours. Lion Group shares closed at $3.33, up 19.78%.

Korean Investment Firm Partners with Open Asset to Build Security Token SystemKorea Investment and Securities (KITC), one of the major securities firms in the nation, announced today that it signed a memorandum of understanding (MOU) last week with Seoul-based blockchain developer Open Asset to construct a distributed ledger system for a security token alliance led by KITC. That’s according to a report by local news outlet Dailian.Photo by Growtika on UnsplashSecurity token groupIn March, KITC initiated a security token group called “Korea Investment ST Friends” in collaboration with online banks Kakao Bank and Toss Bank, as well as Kakao Enterprise, an artificial intelligence (AI) solution provider. The primary objective of this alliance is to establish the necessary infrastructure for issuing products suitable for security tokens.Tech expertiseOpen Asset, led by its CEO Kim Kyung-up, boasts a team of tech talents. The company played a key role in the Bank of Korea’s central bank digital currency (CBDC) project and participated in the development of Kakao-backed initiatives such as the blockchain platform Klaytn and the digital wallet Klip.Future system integrationThe partnership with Open Asset aims to integrate the forthcoming distributed ledger system into KITC’s existing securities trading platform, creating synergies for its business. Additionally, the two entities are exploring the possibility of connecting the new platform with the systems of other participants in the group in the future.Choi Seo-ryong, the head of the platform division at KITC, emphasized the investment firm’s objective of establishing market standards for security tokens that offer numerous possibilities. He added that KITC will work with Open Asset to develop an innovative and efficient system.

The Current Status of Crypto in AsiaWith the United States having taken a very harsh line relative to cryptocurrency of late, there has been a lot of chatter surrounding the likelihood of Asia driving crypto forward. With that in mind, we’ve taken a look at the state of crypto in a number of Asian countries.©Pexels/RODNAE ProductionsJapanJapan is among the most crypto-friendly developed nations globally, having acknowledged Bitcoin as a legal payment mode and regulated crypto exchanges in 2017. Bitflyer and Bitbank are among the crypto exchanges operating in Japan, which currently has over 23 authorized crypto exchanges.The country aims to balance consumer protection and innovation by requiring crypto exchanges to register with the FSA, comply with stringent rules on security, anti-money laundering, and reporting, undergo regular FSA audits and inspections, and be part of the Japan Virtual Currency Exchange Association (JVCEA) for self-regulation.Despite being regulated, Japan’s crypto market is lively, with the Yen ranking second for Bitcoin trading volume by currency. The country has a flourishing crypto community, including blockchain firm LayerX, which requires ChatGPT expertise. Japan is also exploring the potential of central bank digital currencies (CBDCs) and plans to launch a pilot program with private sector partners in 2023 to test their feasibility for various use cases, aligning with the country’s strict approach to crypto.Japan’s crypto taxation is unfavorable, with crypto gains taxed at the same rates as regular income, potentially reaching up to 55% for higher income brackets. However, Japan is one of the few countries with comprehensive guidelines on crypto taxation, with the NTA providing a detailed document that explains different types of transactions and their corresponding tax calculations.ChinaChina’s ban on crypto mining led to many miners moving their operations overseas or selling their equipment at a loss. However, China’s crypto-mining industry bounced back, with a 21% share of the global hash rate. While China has a competitive advantage in cheap electricity, regulatory risks remain.China’s digital yuan is a legal tender fully backed by the People’s Bank of China (PBOC) and pegged to the renminbi. Unlike most cryptocurrencies, it is not decentralized or anonymous but is monitored by the PBOC. Adoption has been slow despite various partnerships and pilot tests, including with WeChat Pay.China is working with other countries on the Multiple CBDC Bridge project to explore the feasibility of cross-border fund transfers among different currencies. Launching its own CBDC may allow China to reduce its reliance on the US dollar and increase its influence over global trade and monetary policy. However, the success of that endeavor is questionable.Hong KongHong Kong is a crypto-friendly jurisdiction that faces banking access and mainland influence challenges. Despite difficulties opening local bank accounts after the closure of two crypto-friendly banks, Hong Kong remains committed to fostering its fintech hub status.The government proposed allowing retail investors to trade cryptocurrencies and ETFs and reviewing property rights for tokenized assets while considering legalizing smart contracts. Crypto purchases for all citizens are due to be legalized in June 2023. These measures should attract more investors and businesses to the city’s crypto industry.Nonetheless, Hong Kong must overcome hurdles regarding banking access and regulatory uncertainty from mainland China to maintain its attractive status for crypto businesses and investors.SingaporeSingapore has a supportive crypto ecosystem and regulations with low tax rates, favorable policies, strong financial center reputation, and proximity to other Asian markets. Notable international crypto players with offices in Singapore include Coinbase, Crypto.com and Kraken.However, Singapore imposes strict rules on crypto service providers to prevent illicit activities, requiring digital payment token (DPT) services to obtain a license under the Payment Services Act or face fines and jail time. Singapore’s crypto industry also faces competition from other jurisdictions, such as Hong Kong and the UAE, offering tax incentives and favorable legal frameworks.IndiaIndia’s crypto industry faces uncertainties due to the lack of a clear regulatory framework and frequent changes in the government’s stance. Despite having a large tech-savvy population and an active crypto community, the industry struggles with regulatory compliance and legal risks. In 2018, the Reserve Bank of India’s ban on banking channels cut off many crypto businesses and users.The Supreme Court of India later overturned the ban, but draft bills to ban or regulate crypto have since been proposed without official introduction or passage. India recently imposed a preemptive ban on crypto advertising and sponsorships and is exploring the integration of a CBDC. India’s position on crypto leans toward the anti-crypto side, just short of an outright ban.For brevity, we’ve confined discussion to these five Asian venues. However, it would be remiss of us not to mention that Vietnam has one of the highest levels of crypto adoption in the world while having a crypto trading ban in place. Not so in South Korea where crypto trading is legal, with strict regulation having been put in place. Meanwhile, Thailand’s Securities and Exchange Commission (SEC) has approved four cryptocurrencies as tradable assets, with crypto trading in the country having a legal status.It’s difficult to figure out precisely how crypto will develop geographically but it seems certain that its future will be molded to some extent in Asia.